Book Summary Preview : Rich Dad’s Guide to Investing

The Big Idea
Free yourself from financial hardship, have your money work hard for you, and retire at an earlier age so you can enjoy life and do the things that really matter!

Rich Dad’s Guide to Investing is a long-term guide for anyone who wants to become a rich investor and learn how to invest in what only rich people can invest in. This is not a guarantee. It is simply part of your education as a business investor. You cannot just get rich quick, because that would be a guarantee you will lose your fortune as soon as you get it. Real long-term riches, the kind that keeps your children and grandchildren free from worries about money – this is the financial freedom that can be yours -but only if you do your homework and allow yourself to learn.

Phase 1: Are you mentally prepared to be an investor?
Investor control # 1: Control over yourself

Chapter 1: What should I invest in?

“It’s the first million that is the hardest.”

In 1930, Joseph Kennedy pushed for the creation of the SEC or Security and Exchange Commission after the stock market crash of 1929. This government body was formed in order to protect the public from unscrupulous dealers. Ironically, this same Commission that was formed to protect the public from bad deals also keeps them from the best investment deals.

What are the types of investors?

Only the rich can invest in certain types of investments. An accredited investor is someone who is qualified to invest because:

• He or she has a net worth of $1 million or more.
• He or she has an annual income of $200,000 (or $300,000 jointly with a spouse) who has a reasonable expectation of reaching the same income level in the current year.
• He or she can put up the minimum investment unit for accredited investors, $35,000.

A Sophisticated investor has the 3 E’s:

• Education
• Experience
• Excessive Cash
• . . . . . . . . . . .

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